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IDC study says MSP's will make money
By Jon Newton, p2pnet.net
(more articles from this author)
2001-12-04
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Music Industry News - as it happens
Source: MusicDish/Mi2N - November 19, 2001

Pirates or not, music service providers will make lots of money, says report According to a new IDC study, "The persistence of free music services will be a major inhibitor of the market for paid [music] services during the forecast period" [ 2003 to 2005], but:

Most, "paid MSPs will have subscription-based business models; "MSPs will partner with consumer portals, ISPs, wireless service providers, and retail Web sites, among other third-party, consumer-facing entities for distribution; and, Major record labels will continue to assert and leverage their dominant position to shape the online music space as it evolves."

Label-backed and independent fee-based music service providers (MSPs) will depend heavily on copyrighted content from music labels and publishers, whose music licensing practices have recently come under scrutiny by the US Department of Justice and the US Congress, says the report. But not to worry, says Susan Kevorkian, an analyst with IDC's Consumer Devices and Technologies service: "There's a growing population of music enthusiasts that are ready to embrace paid downloads, streaming on demand, and online radio." While the major music labels do their best to eliminate "unauthorized online distribution of copyrighted music, a clear and substantial opportunity" remains for MSPs, says IDC, adding that it thinks will begin to grow steadily in 2003 and reach revenues of $1.6 billion by 2005.

Related News from Mi2N:
» Despite Legal Battles, The Music Service Provider (MSP) Market Will Reach $1.6 Billion By 2005


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